Category International Taxation
May 16, 2016 International Taxation
Australia may put the brakes on a proposal which could have resulted in a drought of foreign labor coming to the country.
Over the weekend the Prime Minister of Australia Malcolm Turnbull indicated that the proposed “backpacker tax” could be delayed or dropped entirely, following gears that the measure would see seasonal agricultural workers skip Australia in favour of New Zealand.
The “backpacker tax” is a proposal which would see holidaymakers taxed at a rate of 32.5 percent on the first dollar earned, instead of enjoying a tax-free threshold of AUD 18 200.
The tax has been a subject of controversy ever since it was first announced, especially in agricultural regions of the country, which are highly reliant on temporary labour provided by temporary holidaymakers.
It is feared ...Read More
The IRD will soon have its hands on a fresh set of data concerning taxpayers who have actively sight to evade their taxes using companies registered offshore.
Over the weekend the Inland Revenue Department praised a decision made by the Australian Tax Office (ATO), the UK HM Revenue and Customs (HMRC), and the US Internal Revenue Service (IRS) to share leaked data regarding taxpayers using entities registered in tax havens in order to evade their tax obligations.
The group manager of compliance planning and development at the IRD Raju Budhia explained that the Department would soon begin working in close cooperation with the ATO in order to obtain information on any New Zealanders which have used offshore structures to evade their tax obligations in New Zealand.
The data jointly held by th...Read More
New Zealanders are unlikely to move their business overseas for tax reasons, as they are generally happy with the New Zealand tax system as it is.
According to a new report published by the accounting firm Grant Thornton, owners of businesses in New Zealand are unlikely to shift their affairs overseas in order to reduce their tax obligations in New Zealand.
Approximately 94 percent of all New Zealand business owners participating in the survey claimed they would not move their business overseas in order to reduce their tax liabilities, while on average only 67 percent of business owners in other countries gave the same reply.
According to Murray Brewer, partner at Grant Thornton, said that New Zealand’s geographical isolation and the small size of an average New Zealand company were both ...Read More
Calls have been raised to take further steps to create closer economic ties between Australia and New Zealand by bringing the two countries’ tax systems closer.
Last week a new research was co-published by the Sydney’s Centre for International Economics and New Zealand Institute of Economic Research, showing that the economies of Australia and New Zealand could grow by a additional NZD 6.9 billion over the next 18 years if changes were made to the trans-Tasman tax rules to stop the double taxation of dividends.
The research was commissioned by the Australian Leadership Forum to examine the potential effects of scrapping the current system for franking and imputation credits, and establishing a new “streamlined” tax system which would allow taxpayers to claim personal tax refunds on the ta...Read More